SALES-TYPE LEASES

3 Months Ended

Mar. 31, 2017

NOTE 6 – SALES-TYPE LEASES

The Company leases revenue equipment to certain of its owner-operators and accounts for these transactions as sales-type leases. These leases have terms of 30 to 72 months and are collateralized by a security interest in the related revenue equipment. A minimum lease receivable is recorded, net of unearned interest income and deferred gain on sale of the equipment. The gain is recognized as payments are collected, rather than in the period the lease is recorded due to the uncertainty of collection.

The components of the net investment in sales-type leases are as follows at March 31, 2017 and December 31, 2016 (in thousands):


	2017		2016
Minimum lease receivable	$	23,049	$	21,055
Deferred gain		(3,128)		(3,049)
Net minimum lease receivable		19,921		18,006
Unearned interest income		(3,755)		(3,671)

Net investment in sales-type leases		16,166		14,335
Current portion		(4,015)		(3,516)
	$	12,151	$	10,819

The long-term portion of sales-type leases is classified in other long-term assets on the consolidated balance sheets at March 31, 2017 and December 31, 2016.

Gain or loss on disposition of revenue equipment leased to owner-operators is included as a component of purchased freight in the consolidated statements of operations and comprehensive loss. The gain totaled approximately $0.2 million and $0.1 million for the three months ended March 31, 2017 and 2016, respectively.